USD/GBP Rate & Comments for 28th September 2011

US$/GBP – 1.5634
Sterling strengthened against the US dollar yesterday, following gains by the euro, as a rebound in global stock markets increased risk appetite and boosted confidence in sterling. There was a cautious optimism amongst investors that European policymakers were putting together a more solid plan to resolve the debt crisis, however, with nothing concrete announced, this was merely speculation. Sterling was up by 0.7% against the US currency and relatively flat against the euro, having earlier broken above the €1.15/£1 level. UK retail sales were disappointing, coming in at a 16 month low. Out today we have house price figures so call in now for a live exchange rate.

In the US, the US dollar extended gains versus the euro and the yen as investors are becoming increasingly optimistic that a solution for the euro debt crisis is near. The US dollar fell by 0.7% against the common currency, but rose by 0.4% versus the yen. Data yesterday showed US consumer confidence edged slightly higher, however, it remained relatively unchanged since August. These figures suggest spending in the US is fragile and the economic environment is still weak. Out today are US durable good orders for August. Call in now for a live rate.